Living in Miami: $4,050 rent + $1,350 daycare

$630,500 net worth - A 36-year-old program operations manager shares her financial journey and monthly expenses

Jul 13, 2024

Exploring the Hidden Aspects of Wealth Building

Welcome to this week’s newsletter, where we explore various financial journeys including diverse experiences and insights of individuals across different stages of life. This week includes the financial habits, challenges, and successes of people in their 30s and 40s.

First, is a 36-year-old program operations manager from Miami, FL, who earns $261,000 annually who struggles with balancing financial comfort and spontaneity while managing substantial monthly expenses. Next, we examine the struggles of a New York City couple in their early 40s, earning a combined $180,000 annually but facing significant relationship tension due to financial imbalances and career frustrations. Lastly, we highlight the journey of a high-earning couple in their late 30s and early 40s, who have achieved a net worth of $4.86 million through strategic career moves, hard work, and real estate investments.

Join us as we uncover the key takeaways from these stories that can help you navigate your own financial path.

Consider taking one action today to create the life you want tomorrow!

In their 30s:

$630,500 net worth - A 36-year-old program operations manager living in Miami, FL. She earns $261,000 annually and shares all her financial habits and lifestyle in a Money Diary. She and her husband manage separate accounts but split expenses equally. Their accumulated net worth is 84th percentile based upon their age group. Their net worth consists of 33% in retirement accounts, 27% in taxable brokerage and 39% in cash (HYSA/checking). Despite having savings and investments, she expresses concern about balancing financial comfort and spontaneity. Their monthly expenses include $4,050 for rent and $1,350 for daycare. Reflecting on her financial upbringing, she notes that her parents emphasized savings and self-reliance. She attended college with scholarships and minimal loans, repaying them quickly after graduation. Her family's financial stability growing up allowed her to focus on saving and planning for the future. Despite a high salary and no debt, she still grapples with the balance between enjoying life and ensuring long-term financial security. “I always want to have enough money saved up so that I’d feel comfortable quitting my job and doing something completely random for a while (getting another degree, pursuing a different career as a yoga instructor, joining the peace corps) but I always fret about the balance of doing this and being comfortable financially in the long run.”

TAKE-AWAY: the importance of balancing savings and spending. You need to find your balance between saving for the future and enjoying the present.

In their 40s:

$839,000 net worth - A married couple living in New York City (she is 39 years-old he is 42 years-old). Together they earn $180K annually. In this hour long podcast, this couple shares details about experiencing significant tension in their relationship due to financial struggles and mismatched career achievements. Their accumulated net worth is 84th percentile for their age group. She is a high achiever, while he has faced career difficulties and has not been able to contribute financially as much as he would like. This imbalance has caused frustration, as she feels the pressure to support the household while he feels insecure and avoids conversations about his professional life. “I feel like I'm not bringing enough to the table financially for us to grow as a couple and for our future.”

TAKE-AWAY: the importance of open and honest communication about finances in a relationship. Both partners need to be aligned and supportive of each other's financial goals and struggles. Avoiding difficult conversations can lead to misunderstandings and resentment, while working together can strengthen your relationship and help achieve shared life goals.

$4,860,000 net worth - A 38-year-old woman and her 45-year-old husband discuss their financial journey and current status. They both hold high-level corporate roles in Fortune 100 pharmaceutical companies, with a combined annual income of around $600K, including bonuses and equity. Their accumulated net worth is 98th percentile based upon their age group. In this long form interview, the couple emphasizes the importance of hard work, early career sacrifices, and strategic job changes to maximize income. They also highlight the benefits of networking and seeking mentorship. Net worth consists of 45% retirement accounts, 35% real estate, 10% taxable brokerage, and 4% cash. Their real estate includes two rental properties contributing and they have $ in 529s for their children's education. Their goal is to achieve $6 million in investable assets to enable an early retirement without significantly changing their lifestyle. "Put in the work early in your career and you’ll reap the benefits later."

TAKE-AWAY: the importance of hard work and strategic career moves. They emphasized putting in the effort early in their career, networking, and not being afraid to switch companies for better opportunities. This contributed to their high income and overall financial success, showing that dedication and strategic decisions can impact personal finance growth.